Andres Has Created an Online Service That Allows Users to Instantaneously

question 23

Multiple Choice

Andres has created an online service that allows users to instantaneously distribute documents to hundreds of other people. Which of the following strategies can help him reduce his risk of being held liable for the content distributed by the users of his service?

• A) He should include a provision in his terms of use allowing him to claim indemnification from a user if he is held liable for something they distributed through the service.
• B) He should include a provision in his terms of use warning users that he will monitor every message they distribute through the service.
• C) He should avoid telling users what they can or cannot distribute through the service for fear of infringing their free speech.
• D) He should review all documents and edit anything that might be considered offensive.
• E) He should implement all of the above strategies.

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Definitions:

Total Revenue

Total Revenue is the entire amount of money earned by a firm from the sale of its goods or services before any costs or expenses are deducted.

Purely Competitive Firm

A business that operates in a market where there are many sellers and buyers, the product is homogeneous, and there is free entry and exit from the market.

Units of Output

The quantity of goods or services produced by a company, industry, or economy within a specific period.

Marginal Revenues

The extra earnings accrued by selling an additional unit of a good or service.